4. BASIC RATE. Section 120(b), as amended, provides that the Federal share payable
shall not exceed 80 percent for obligations incurred on or after December 18, 1991, except for
those States that elect to participate in the sliding scale rates discussed in Section 5, below. The Federal share
payable shall be computed on the basis of total program costs reported on the Highway Safety Program Cost Summary (HS-217),
with the exception of Planning and Administration (P&A) obligations which shall be matched 50% Federal/50% State or
Local funds for costs attributable to the P&A functions.

The Federal share payable for the Virgin islands, Guam, American Samoa and the Northern Mariana Islands
shall be 100 percent.

5. SLIDING SCALE RATES. Special matching rates are developed in two categories to compensate grantee
States equitably for the area of the States impacted by nontaxable Indian Lands, Public Domain Lands, National
Forests, and National Parks and Monuments. These are known as "Sliding Scale Rates" which are individually
discussed below, with rates provided in Attachment A (Tables No. 1 and 2). Except as provided in Section 4, the
maximum Federal share cannot exceed 95 percentum.

a. Section 120"(b)(i)" rates shown in Table No. 1 are applicable to fourteen States. The rates are based on the
ratio of the area of nontaxable Indian Lands and Public Domain Lands (reserved and unreserved) exclusive
of National Forests and National Parks and Monuments to the total area of the State.

b. Section 120"(b)(2)" rates shown in Table No. 2 are available to the States that desire the increased
Federal share payable in lieu of the basic share of 80 percentum. These rates are based on the ratio of the area of
nontaxable Indian lands. Public Domain Lands (reserved and unreserved), National Forests and National Parks
and Monuments to the total area of the State.

c. Application of the rates under Paragraph(b)(2) requires the execution of annual agreements by the State and NHTSA
Regional Administrators as illustrated in Attachment B. By executing the agreement, the State is committed to the following:

(1) To use the difference between the State's elected matching share and the share that would otherwise be
required solely for highway safety purposes;

(2) To describe the planned utilization of such "saved" funds in the State's annual Highway Safety Plan;
and

(3) To report the expenditure of "saved" funds on an annual basis showing the Problem Areas to
which the funds were applied.

d. The sliding scale rates will be republished periodically as amendments to Attachment A.

Barbara D. Kernan
Associate Administrator
for Administration

Attachment A
NHTSA Order 462-6C
November 30, 1993

SLIDING SCALE RATES OF FEDERAL-AID PARTICIPATION
IN PUBLIC LAND STATES - PARAGRAPH (b)(1)

Table No. 1 - Rates for Section 402

Percentage of cost payable by Federal Government

STATE

80% Federal20% State

50% Federal50% State

Alaska

90.97

77.42

Arizona

90.49

76.22

California

83.57

58.93

Colorado

82.79

56.99

Hawaii

81.30

53.25

Idaho

84.97

62.43

Montana

82.75

56.88

Nevada

94.89

87.22

New Mexico

85.44

63.59

Oregon

84.63

61.59

South Dakota

81.95

54.88

Utah

89.52

73.81

Washington

81.42

53.56

Wyoming

86.77

66.92

SLIDING SCALE RATES OF FEDERAL-AID
PARTICIPATION - PARAGRAPH (b)(2)

Table No.2 - Rates for Section 402

Percentage of cost payable by Federal Government

STATE

80% Federal20% State

50% Federal50% State

Alabama

80.40

51.00

Alaska

94.95

87.38

Arizona

94.30

85.75

Arkansas

81.55

53.87

California

88.53

71.32

Colorado

87.31

68.27

Connecticut

80.04

50.10

Delaware

-0-1/

-0-1/

Florida

81.93

54.83

Georgia

80.48

51.19

Hawaii

82.48

56.21

Idaho

92.66

81.65

Illinois

80.15

50.37

Indiana

80.17

50.43

Iowa

80.00

50.01

Kansas

80.05

50.14

Kentucky

80.58

51.45

Louisiana

80.41

51.04

Maine

80.28

50.71

Maryland

80.11

50.27

Massachusetts

80.12

50.30

Michigan

81.85

54.62

Minnesota

81.42

53.55

Mississippi

80.83

52.09

Missouri

80.69

51.72

Montana

86.58

66.45

Nebraska

80.18

50.46

Nevada

95.002/

91.83

New Hampshire

82.45

56.13

New Jersey

80.14

50.35

New Mexico

87.92

69.80

New York

80.10

50.26

North Carolina

80.98

52.44

North Dakota

80.93

52.32

Ohio

80.16

50.39

Oklahoma

80.58

51.46

Oregon

89.73

74.33

Pennsylvania

80.38

50.96

Rhode island

80.05

50.12

South Carolina

80.63

51.58

South Dakota

82.82

57.05

Tennessee

80.66

51.66

Texas

80.22

50.56

Utah

93.23

83.07

Vermont

81.08

52.71

Virginia

81.50

53.74

Washington

86.50

66.25

West Virginia

81.36

53.40

Wisconsin

81.11

52.78

Wyoming

90.49

76.22

District of Columbia

83.15

57.87

Puerto Rico

80.25

50.62

1/ The State of Delaware is not entitled to rates over 80% or 50% because the ratio of the areas of nontaxable
Indian Lands, Public Domain Lands (reserved and unreserved), National Parks and Monuments to the total area
of this State is negligible.

2/ 95.00% is the maximum Federal Share.

Attachment B
NHTSA Order 462-6C
November 30, 1993

AGREEMENT - SECTION 120(b)(2) OF TITLE 23UNITED STATES CODE

This agreement between the State of ___________________________________,
acting by and through its Governor's Representative for Highway Safety, and the National Highway Traffic
Safety Administration of the U.S. Department of Transportation, shall take effect on _____________________
and extend through___________________ , the end of the first full fiscal year of the State.

Whereas the State of __________________ has elected to match Federal highway safety funds in accordance
with paragraph (b) (2) of Section 120 (b) of Title 23, United States Code, as amended, and NHTSA Order
462-6C;

Therefore, the State of ____________________ hereby agrees to apply the difference between the State's share
as provided inparagraph (b) (2) and what its share would be if it had elected to pay the share provided in
paragraph(b)(1) of Section 120(b) of Title 23, U.S.C., solely for highway safety purpose other than paying its
share of highway safety projects.

The State agrees to furnish to the National Highway Traffic Safety Administration annual expenditure reports
annotated to show that the savings in the State's Federal aid matching share during the period have been applied
solely to highway safety in fulfillment of the terms of this agreement.